Both E-Business and ASPs Create Risks and Costs for Organizations

question 71

Multiple Choice

Both e-business and ASPs create risks and costs for organizations.Which of the following best pairs a potential cost of e-business with a potential risk of using an ASP?

• A)Potential for customer distrust, inability to pay monthly fees
• B)Financial costs associated with setting up networks, reduced flexibility
• C)Potential for customer distrust, psychological & behavioral factors
• D)Financial costs associated with setting up networks, psychological & behavioral factors

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Definitions:

Diversification Analysis

A strategic approach used by businesses to expand their operations by entering into new markets or developing new products, often to mitigate risks associated with over-reliance on a single revenue stream.

R&D-Manufacturing Efficiencies

Improved productivity and innovation resulting from close coordination between research and development (R&D) and manufacturing processes.

Market Segments

Subsets of a market made up of consumers or organizations with similar attributes who are expected to respond similarly to marketing strategies.

Strategic Marketing Process

A structured method for developing, implementing, and assessing marketing tactics to accomplish business goals.